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The Many Benefits of Homeownership
The link between financial security and homeownership is undeniable. But your home also provides a sense of gratitude, pride, and comfort. Here are some of the best emotional and financial benefits that come with owning a home.
In their list of top reasons to buy a home, the National Association of Realtors (NAR) highlights some of the powerful, non-financial aspects of homeownership. Among them is the opportunity to customize your home to reflect your personality and needs: “The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.” Another benefit homeowners enjoy is the stability it provides. Homeowners typically stay put longer than renters. According to NAR, when you remain in one place for more than a few years, you can grow closer to your community, which can enhance your sense of pride and lead to better relationships.
Owning a Home Is a Building Block for Financial Success
The benefits of homeownership extend beyond the emotional too. Owning your home is a cornerstone of achieving financial success. As Leslie Rouda Smith, President of NAR, says: “Homeownership is rewarding in so many ways and can serve as a vital component in achieving financial stability."
But many people may not realize just how much owning a home contributes to their net worth. A recent NAR report details several homeownership trends and statistics, including the difference in net worth between homeowners and renters. It finds: “. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”
The Difference in Net Worth Is Significant
Homeowner Renter
$300,000
in net worth
$8,000
in net worth
Source: NAR
To put that into perspective, the average homeowner’s net worth is roughly 40X
that of a renter. The gap in net worth exists because as a homeowner, you gain equity as your home appreciates in value and as you pay your mortgage each month. As a renter, you’ll never see a return on the money you pay out in rent every month.
Bottom Line
The benefits of owning a home are foundational. As a homeowner, you can feel proud of the space you call home and know you’ve made a sound financial investment. If you want to learn more about all the ways homeownership can benefit you, let’s connect.
